Here's Why Innovation New Material Technology (SHSE:600361) Has A Meaningful Debt Burden
Here's Why Innovation New Material Technology (SHSE:600361) Has A Meaningful Debt Burden
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. Importantly, Innovation New Material Technology Co., Ltd. (SHSE:600361) does carry debt. But the real question is whether this debt is making the company risky.
David Iben说得好:“波动性不是我们所关心的风险。我们关心的是避免资本永久损失。” 看起来,明智的投资者知道-通常与破产有关的-债务是评估公司风险的非常重要的因素。重要的是,创新新材料技术股份有限公司(SHSE:600361)确实带着债务。但最重要的问题是,这种债务是否使公司面临风险。
When Is Debt A Problem?
什么时候负债才是一个问题?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.
当企业无法轻松通过自由现金流或以优惠的价格增发股份来履行义务时,债务和其他负债会对企业产生风险。最终,如果企业无法履行其偿还债务的法律义务,股东可能面临一无所有的风险。但是,更为频繁(但仍然代价高昂)的情况是,公司必须以垃圾价格发行股票,永久稀释股东,以此来支撑其资产负债表。但债务可以替代稀释,成为需要高资本投资增长的企业的极好工具。当我们考虑公司对债务的利用时,首先要看现金和债务的整体情况。
How Much Debt Does Innovation New Material Technology Carry?
创新新材料技术有多少债务?
As you can see below, at the end of March 2024, Innovation New Material Technology had CN¥8.37b of debt, up from CN¥7.69b a year ago. Click the image for more detail. However, it does have CN¥2.84b in cash offsetting this, leading to net debt of about CN¥5.53b.
从下图可以看出,在2024年3月底,创新新材料技术的债务总额为837亿元人民币,高于一年前的769亿元人民币。点击图片了解更多详情。然而,它确实有28.4亿元人民币的现金抵销,导致净债务约为553亿元人民币。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240712/0-04005933fbafcf976fea7e5d719a10bc-0-979ab8b60bde1f33664d6877f50870c7.png/big)
How Healthy Is Innovation New Material Technology's Balance Sheet?
创新新材料技术的资产负债表状况如何?
We can see from the most recent balance sheet that Innovation New Material Technology had liabilities of CN¥10.0b falling due within a year, and liabilities of CN¥1.36b due beyond that. On the other hand, it had cash of CN¥2.84b and CN¥3.93b worth of receivables due within a year. So its liabilities total CN¥4.62b more than the combination of its cash and short-term receivables.
我们可以从最近的资产负债表中看到,创新新材料技术到期应付的负债为100亿元人民币,超过13.6亿元人民币。另一方面,它有28.4亿元人民币的现金和39.3亿元人民币的应收账款。因此,它的负债总额比现金和短期应收账款的总和多462亿元人民币。
This deficit isn't so bad because Innovation New Material Technology is worth CN¥18.5b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.
这种赤字并不太糟糕,因为创新新材料技术价值185亿元人民币,如果必要,可能筹集到足够的资本以支撑其资产负债表。但我们一定要保持警惕,看到其债务带来的风险。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
我们使用两个主要的比率来告诉我们相对于收益的债务水平。第一个是净债务除以利息、税、折旧和摊销前利润(EBITDA),而第二个是其利润前利息和税(EBIT)覆盖其利息费用的次数(或其利息覆盖率,简称)。因此,我们考虑与折旧和摊销费用相关的盈利以及没有相关费用的盈利相对于债务水平。
Innovation New Material Technology has a debt to EBITDA ratio of 2.8 and its EBIT covered its interest expense 4.9 times. Taken together this implies that, while we wouldn't want to see debt levels rise, we think it can handle its current leverage. We saw Innovation New Material Technology grow its EBIT by 5.1% in the last twelve months. That's far from incredible but it is a good thing, when it comes to paying off debt. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Innovation New Material Technology can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
创新新材料技术的债务对EBITDA比率为2.8,其EBIT覆盖其利息支出的4.9倍。综合考虑,这意味着,虽然我们不希望看到债务水平上升,但我们认为它可以处理其当前的杠杆。在过去的十二个月中,我们看到创新新材料技术的EBIT增长了5.1%。虽然还不可称为不可思议,但在偿还债务方面是一件好事。当您分析债务时,资产负债表显然是重点区域。但最终,企业未来的盈利能力将决定创新新材料技术能否随着时间的推移加强其资产负债表。因此,如果您专注于未来,您可以查看这份免费报告,其中显示了分析师的收益预测。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Innovation New Material Technology burned a lot of cash. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
最后,企业需要自由现金流来偿还债务;会计利润根本不够。因此,我们明确需要查看该EBIt是否带来相应的自由现金流。在过去的三年中,创新新材料技术消耗了大量现金。虽然投资者毫无疑问地希望在适当的时候扭转这种情况,但它确实意味着其债务使用更具风险性。
Our View
我们的观点
Innovation New Material Technology's struggle to convert EBIT to free cash flow had us second guessing its balance sheet strength, but the other data-points we considered were relatively redeeming. But on the bright side, its ability to to grow its EBIT isn't too shabby at all. Taking the abovementioned factors together we do think Innovation New Material Technology's debt poses some risks to the business. While that debt can boost returns, we think the company has enough leverage now. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. For example, we've discovered 4 warning signs for Innovation New Material Technology (2 don't sit too well with us!) that you should be aware of before investing here.
创新新材料技术难以将EBIt转化为自由现金流,这让我们对其资产负债表的实力产生了疑虑,但我们考虑的其他数据点相对较好。但好在,它增长EBIt的能力也不错。综合考虑以上因素,我们认为创新新材料技术的债务对该公司造成了一些风险。虽然债务可以增加回报,但我们认为该公司已经有足够的杠杆力量。在分析债务水平时,资产负债表是明显的起点。但最终,每家公司都可能存在超出资产负债表范围的风险。例如,我们发现了创新新材料技术的4个警告信号(其中2个不太令人满意!),在投资此处之前应该注意这些信号。
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
总的来说,专注于没有净债务的公司往往更好。您可以访问我们的特别列表,其中包含这些公司(所有这些公司都有盈利增长的记录)。这是免费的。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
对本文有反馈?对内容感到担忧?请直接与我们联系。或者,发送电子邮件至editorial-team (at) simplywallst.com。
这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有反馈?对内容感到担忧?请直接与我们联系。或者,发送电子邮件至editorial-team@simplywallst.com。